How Can a Young Driver Reduce a Car Insurance Premium?

Sixteen-year-old drivers have the highest accident rates in the country.

According to the website AutoInsurance.org, drivers aged 16 to 24 pay the highest car insurance premiums in the country, and male drivers in this age range will pay even more. Young drivers can reduce premiums, however, if they know what is available to them.

Coursework

Both driver's education and defensive driving courses can help lower a teen's car insurance premium. If you are a teen or a parent of a teen, it's a good idea to check with your auto insurance company to find out if this discount is offered. Additional driving education will also help lower premiums costs down the road as well, especially if the coursework prevents future accidents and, therefore, raised premiums.

Grade Considerations

If a teen has good grades in high school or college, he may be eligible for a lower car insurance premium directly through his or his parents' auto insurance policy provider. Similarly, a student who goes away to college while still on a parent's auto insurance policy may be eligible for discounts. Check with your auto insurance company to learn the details of your policy.

Keeping Tabs on the Teen

The website Insure.com states that if a parent spies on their teen driver, either through the use of GPS devices or secret camera, the teen driver's auto insurance premium may be reduced by 10 to 15 percent.

References

• Auto Insurance: Factors that Affect Car Insurance Rates
• Insurance Information Institute: How Can I Save Money on Car Insurance
• Insure: 12 Ways to Save Money on Car Insurance

Resources

• Insurance Information Institute: Find an Insurance Company
• National Association of Insurance Commissioners: Map of NAIC States & Jurisdictions